Released: November 16, 2008

What happens if your insurer goes under?

Source: Ron Lieber, New York Times (Free Registration)

Ever since the problems at the American International Group burst into the consciousness of everyday consumers two months ago, a sort of low-grade fear has set in among policyholders at insurance companies of all kinds.

This week, the concern moved up a notch or two. First, the federal government raised its A.I.G. bailout commitment to $150 billion. Then, a Goldman Sachs research report suggested that some life insurance companies might have to exit the business altogether.

All of this raises many questions: What has happened in the past when insurance companies have gone under? What might happen to your life policy or annuity in the worst case? Is there anything you can do to protect yourself?

Read Full Article: What happens if your insurer goes under?